BY Kathy Crosett
CTV ad spending is increasing but a Gracenote report indicates that the effectiveness of the format may not. Your accounts want to target consumers who are increasingly watching CTV. Could the use of contextual advertising improve effectiveness?
What is Contextual Advertising?
When buying ads, marketers have been able to “match their ad with the right content.” If your account is selling cookware, they’ll want their ads to appear during a TV cooking show. Or they may opt to have their ads appear on websites dedicated to cooking and recipes.
As CTV grows more popular, streaming platforms and content providers have been tagging their ad content. Specifically, they note elements such as genre. They indicate whether the content is family friendly, and the type of emotions that are included. AI has helped with the tagging of content, but Gracenote analysts suggest that a standardized system of tags could make the process more efficient and effective.
Why Contextual Targeting Matters
In the past three years, 42% of marketers have increased CTV spending by as much as 49%. And when all spenders, such as agencies, are included, 35% have shifted between 26% and 49% of spending to CTV.
It’s easy to see why. As consumers encounter higher costs of streaming services, they are watching more ad-supported TV viewing. AudienceSCAN data indicates that the percentage of U.S. adults watching free ad-supported TV increased by over 20% in the past year.
In addition, analysts report that streaming accounts “for more time with TV than traditional broadcast and cable combined.”
Marketers have a bigger opportunity to connect with consumers in the OTV and CTV world. But they are not sure if their ads are always working. 40.5% say CTV is very effective. But 32% believe CTV ad spending is not very effective.
What do brands want from their streaming ads?
The Gracenote survey underscores the top goals for marketers going forward:
- 30% want to increase brand awareness
- 28% aim for revenue growth
Gracenote analysts argue that media buyers must focus on “content-level” advertising to reach a broader audience.
Demographic targeting still rules for 29.5% of buyers. However, buyers can go a little deeper. While CTV ads can be personalized, they struggle to reach scale.
11% of buyers target at the contextual content channel level, and 9% at the program level.
How Contextual Content Data Improves Results
Researchers report that when marketers run ads that match genre and tone to the content being viewed, “42% of viewers said they were more interested in the product.”
With a significant percentage of CTV advertising being done through programmatic means, analysts argue that there’s a growing need for standardization in content metadata. The metadata can explain details like a show’s level of adult language and other features that could make it a poor match for a family audience. With this kind of metadata system in place, the programmatic ad buying mechanisms would match ads with the right kind of content. And the system would be easier for ad buyers to use across a wide variety of streaming platforms.
Purchase Motivators
Your accounts should also understand the purchase motivators for their target audience. For OTT TV Viewers, AudienceSCAN data reveals the following details:
- 45% want to purchase products that make them feel healthy.
- 42% are seeking products that increase their comfort.
- 38% of these consumers are between the ages of 25 and 44.
With a subscription to AudienceSCAN, you can show your accounts the types of programs the streaming audience enjoys watching. They should also know that 29% of OTT TV Viewers watch free channels with commercials. This viewing behavioral detail gives your accounts plenty of opportunity to reach viewers.
OTT TV Viewers get more of their TV programming through OTT services than other sources. And a significant percentage, 45.8%, have responded to a streaming TV ad in the past 30 days.
The programs they enjoy most include movies (60.9%), comedies, 45.2%, and dramas 39.5%.
Health Care Brands and CTV Advertising
In a study reported on MMM-online.com, researchers “highlighted the importance of context for CTV advertising” for health care brands. Specifically, a branded canvas ad allows the advertiser to show details such as a “persistent branded area around the perimeter.” And often these ads include a scannable QR code. Consumers who see these ads have a much great awareness and purchase intent.
But it’s the contextual advertising that makes an even bigger difference. When marketers ran an ad near the right content, consumer awareness increased dramatically.
Understanding your account’s target audience and their purchase intent is significant. Pair that understanding with the use of contextual advertising when making media purchases to improve ROI.
Photo by Anastasia Shuraeva on Pexels.
